Wednesday, April 16, 2008
The $ Plumbs New Low
Even a U.S. Dollar "Bear" like me thought that the dollar would get some relief. Perhaps it is not to be.
Crude oil prices are soaring. Higher oil puts pressure on the $ with its concomitant increase in the US Trade Deficit, as the $ falls it pressures oil prices higher in $ terms, which, in turn, puts further pressure on the $...
I thought the ECB would have cut in the next 90 days or so, supporting the $. Perhaps I am wrong, and the Europeans have decided that they would rather be able to buy oil than sell chachka's to the US.
Menatt (at) yahoo (d0t) com
Posted by The Short Story Man at 5:10 AM